NNN Single Tenant Acquisition Financial Model
Originally published: 25/04/2020 09:10
Last version published: 15/06/2020 09:50
Publication number: ELQ-72541-3
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NNN Single Tenant Acquisition Financial Model

NNN Single Tenant Investment Real Estate Financial Model for Download

Description
This model is suitable for investors looking at NNN single tenant acquisition projects. Or it might also serve analysts or prospective analysts looking to improve their modeling skills.

NNN Property (Tripple Net) is any property that is rented only to one tenant on a long term basis. Sometimes the acronym STNL is used. The tenant usually covers the operating costs associated with the property, however, this depends on the lease agreement. An example is a free-standing retail property.

This model considers 2 rental increases for the tenant during the holding period. The size of increases along with the date for the increase is flexible.

The model is fully dynamic and allows for a full analysis of a potential acquisition. Filling in all the dynamic inputs for the analysis takes less than 10 minutes.

The contents are as follows:
- Assumptions Tab: flexible acquisition and exit dates, mortgage financing assumptions, re-financing assumptions, acquisition costs, and sale costs assumptions. Exit value for the property is calculated automatically based on NOI for a period and cap rate you assume in your projection.
- Dashboard Tab: Includes 10 years of monthly cash flow, a summary of costs and revenues, 2 charts and main metrics summary: IRR, Equity Multiple, Profit Margin, Net Profit, DSCR, Debt Yield, Operating Margin, Cash on Cash.
- Annual Cash Flow: includes operating revenues, operating costs, NOI, capital costs, debt service, and net income.
- Monthly Cash Flow.
- Flexible Rent Roll with 2 rental bumps (increases) and 2 increases for the operating costs at a flexible date.
- Project Financing/Debt Service with senior debt amortization and re-financing option.

Shall you have any suggestions for upgrading or adjusting my models so that they suit you and my audience better, please let me know. This model has been used multiple times during the underwriting process. However, I am always on a hunt for improvement.

This Best Practice includes
1 Unlocked Excel File

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Further information

Provide the main metrics and financial analysis of NNN investment opportunity like single-tenant retail property.

Acquisition of Single Tenant Net Lease Property

Not suitable for multitenant property

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